The expected Fed interest rate decision has been announced. As anticipated, the Fed chose to keep interest rates unchanged in June. However, the Federal Open Market Committee (FOMC) did not provide clear information regarding future increases. Nevertheless, expectations suggest that there may be further increases (possibly 25 bps) in the coming months. We will provide you with real-time updates on the FOMC's post-meeting statements.
The central bank signaled the possibility of additional rate hikes towards the end of 2023. This came after a easing of inflation in the United States in May 2023, with the Consumer Price Index (CPI) rising by 0.1% on a monthly basis. Meanwhile, the price of Bitcoin showed signs of an initial rise in response to the decision. Many Fed officials have shared their prediction of a rate cut in 2024.
Bitcoin Price Reaction to the Fed Decision The price of Bitcoin maintained a horizontal momentum in its initial response to the pause in rate hikes. However, hints of potential rate increases later in the year could lead to a pump-and-dump scenario for Bitcoin.